01.02.2025 13:53
21Shares has applied to the SEC to launch a spot ETF in the United States using Polkadot (DOT). The company, which has achieved similar success in Switzerland, is collaborating with Coinbase.
One of the leading asset management firms in the US, 21Shares, has applied to the SEC for a Polkadot-based spot exchange-traded fund (ETF). This new ETF, in which Coinbase will act as the DOT custodian, could bring a fresh perspective to the market performance of the cryptocurrency Polkadot. The firm had previously successfully launched a similar product in Switzerland.
The New ETF Application Will Shape the Future of Polkadot
The giant asset management company 21Shares has submitted an application to the US Securities and Exchange Commission (SEC) for a Polkadot-focused spot ETF. According to the company's recent application, the fund will be named 21Shares Polkadot Trust, will be traded on the Cboe BZX exchange, and the security of DOT assets will be provided by Coinbase.
This initiative by 21Shares is an extension of the company's successful experience in the Swiss market. The company, which launched the world's first Polkadot ETP on Switzerland's SIX exchange in February 2021, is now aiming to enter the American market with a similar product. Polkadot, which ranks 18th in the cryptocurrency world by market capitalization, has shown a significant decline in its recent performance. According to CoinMarketCap data, DOT has lost 5.16% in value over the past year and 10.48% in the last month.
The asset management company emphasized that it does not provide any guarantees regarding Polkadot's price movements if the ETF is approved, stating that the fund's shares would also decline in the event of a loss in the cryptocurrency's value. Experienced ETF analyst James Seyffart commented on the matter, saying, "The market will determine the demand for the spot Polkadot ETF. If investor interest is insufficient, the ETF may be terminated shortly. The SEC has a wide range of discretion in evaluating various ETF applications."
The application file also addressed potential risks related to the Polkadot Blockchain network. In this context, the possibility of an increase in DOT supply and the potential classification of the token as a security under US federal laws were highlighted. The Web3 Foundation stated in a February 2023 announcement that it is keeping the distribution of DOT under control to prevent it from being classified as a security and is focusing on technology-oriented promotions.
In addition to these developments, the SEC recently approved Bitwise Asset Management's application for the "Bitwise Bitcoin and Ethereum ETF," which will track the prices of Bitcoin and Ethereum in a single fund. Following the departure of SEC Chairman Gary Gensler, asset management companies have started to submit ETF applications for memecoins like Dogecoin and Bonk.